Civil Law,  Legally Yours

Del Castillo Case Doctrines (Civil Law – Sales and Lease)

Del Castillo Case Doctrines

Summaries of case doctrines penned by Justice Del Castillo.

Civil Law Sales and Lease

Asuncion Urieta Vda. De Aguilar v. Spouses Alfaro
G.R. No. 164402, July 5, 2010A forged Deed of Sale does not confer a better right than a Torrens title the latter being an evidence of an indefeasible title to the property in favor of the person in whose name the title appears.

Bignay Ex-Im Philippines, Inc. v. Union Bank of the Philippines
G.R. No. 171590, February 12, 2014

Eviction shall take place whenever by a final judgment based on a right prior to the sale or an act imputable to the vendor, the vendee is deprived of the whole or of a part of the thing purchased. The gross negligence of the seller in defending its title to the property amounts to bad faith.

De los Reyes v. Ramnani
G.R. No. 169135, June 18, 2010

The issuance of the final certificate of sale is a mere formality and is a mere confirmation of the title that is already vested in the buyer at public sale. The issuance thereof is ministerial upon the debtor’s failure to redeem the property.

Delta Development and Management Services, Inc. v. Enriquez
G.R. No. 168646, January 12, 2011

A mortgage contract executed in breach of the Subdivision and Condominium Buyer’s Protection Decree (PD 957) is null and void.

Diego v. Diego
G.R. No. 179965, February 20, 2013

A stipulation where the vendor promises to execute the deed of absolute sale upon the completion by the vendee of the payment of the purchase price is an indication that the contract is a contract to sell and not a contract of sale.

First Optima Realty Corporation v. Securitron Security Services, Inc.
G.R. No. 199648, January 28, 2015

In a potential sale transaction, the prior payment of earnest money even before the property owner can agree to sell his property is irregular, and cannot be used to bind the owner to the obligation of a seller under an otherwise perfected contract of sale.

Mahilum v. Spouses Ilano
G.R. No. 197923, June 22, 2015

The issue of good or bad faith is central in an annulment of title case as the same is within the coverage of the Torrens system. On the other hand, good or bad faith is immaterial when the case is an annulment of the Agreement and Deed of Absolute Sale and not one of annulment of certificate of title.

Moldex Realty, Inc. v. Saberon
G.R. No. 176289, April 8, 2013

A contract to sell a subdivision is not invalidated by the absence of a license to sell and failure to register the contract under PD 957. While the law penalizes the selling of the subdivision lots and condominium units without prior issuance of a Certificate of Registration and License to Sell by the HLURB and registration of the contract with the Register of Deeds, it does not provide that the absence thereof will automatically render a contract void.
Under the Maceda Law, the defaulting buyer who has paid at least two years of installments has the right of either to 1) avail of the grace period to pay, or 2) the cash surrender value of the payments made.

If the contract is canceled, the seller shall refund to the buyer the cash surrender value of 50% of the total payments made, and after five years of installments, an additional 5% every year but not to exceed 90% of the total payments made: Provided, that the actual cancellation of the contract shall take place after 30 days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act and upon full payment of the cash surrender value to the buyer.

Nicolas v. Mariano
G.R. No. 201070, August 1, 2016

A mere grantee of an unpaid land grant cannot sell or mortgage the land. For both a sale and mortgage to be valid, it is imperative that the vendor is the owner of the property sold, otherwise, each of the contracts are void under the principle of nemo dat quod non habet.

Robern Development Corporation v. People’s Landless Association
G.R. No. 173622, March 11, 2013

The purchase price in a contract of sale can never be left to the decision of only one of the contracting parties and there is no consent when there is merely an offer by one party without acceptance of the other. Thus, there is no perfect contract of sale.

Romero v. Singson
G.R. No. 200969, August 3, 2015

The indefeasibility of the Torrens title cannot be used to validate a forgery or to cure a void sale. A Torrens title does not furnish a shield for fraud, notwithstanding the long-standing rule that registration is a constructive notice of title binding upon the whole world.

Spouses Bernales v. Heirs of Julian Sambaan
G.R. No. 163271, January 15, 2010

In order that the holder of a certificate for value issued by virtue of the registration of a voluntary instrument may be considered a holder in good faith and for value, the instrument registered should not be forged. With the presentation of a forged deed, even if accompanied by the owner’s duplicate certificate of title, the registered owner did not thereby lose his title, and neither does the assignee in the forged deed acquire any right or title to the said property.

Spouses Castro v. Palenzuela
G.R. No. 184698, January 21, 2013

A demand letter presented in evidence by a lessee to prove a lesser liability for unpaid rentals is an admission of liability to the extent of such lesser amount.

Spouses Domingo v. Spouses Manzano
G.R. No. 201883, November 16, 2016

Article 1544 of the Civil Code applies only to instances of double sales where a valid sale was perfected and not where one contract is of a different nature, such as a contract to sell.

Spouses Guidangen v. Wooden
G.R. No. 174445, February 15, 2012

There is no perfected contract of sale in the absence of the meeting of the minds on the purchase price between the parties.

Spouses Montecalvo v. Heirs of Eugenia Primero
G.R. No. 165168, July 9, 2010

Payment of the purchase price is a positive suspensive condition in a contract to sell. Failure of such payment is not a breach but an event that prevents the obligation of the vendor to convey the title from arising.

Spouses Pudadera v. Magallanes
G.R. No. 170073, October 18, 2010

One is a buyer in bad faith when he has knowledge of facts which should have alerted him to conduct further inquiry or investigation on the status of the title of the subject property.

Spouses Sabitsana, Jr. v. Muertegi
G.R. No. 181359, August 5, 2013

In cases of double sales, Act No. 3344 is the applicable law for the sale of unregistered lands while Article 1544 of the Civil Code is the one applicable for the sale of registered lands. Under Act 3344, registration of instruments affecting unregistered lands is without prejudice to a third party with a better right. Accordingly, the mere registration of a sale in one’s favor does not give him any right over the land if the vendor was not anymore the owner of the land having previously sold the same to somebody else even if the earlier sale was unrecorded.

Spouses Vilbar v. Opinion
G.R. No. 176043, January 15, 2014

Registration is the operative act which gives validity to the transfer or creates a lien upon the land. Any buyer or mortgagee of realty covered by a Torrens certificate of title is charged with notice only of such burdens and claims as are annotated on the title.

Yuki, Jr. v. Wellington Co.
G.R. No. 178527, November 27, 2009

Under Article 1670, there is an implied new lease when:
1) the term of the original contract of lease has expired;
2) the lessor has not given the lessee a notice to vacate; and
3) the lessee continued enjoying the thing leased for 15 days with the acquiescence of the lessor.

The formal demand to vacate coupled with the filing of an ejectment suit are categorical acts on the part of the lessor showing that he is not amenable to the renewal of the lease contract.

Leave a Reply

Your email address will not be published. Required fields are marked *